NANYANG PRESS HOLDINGS BERHAD
SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
(k) Foreign Currencies (Contd.) The principal exchange rates for every unit of foreign currency ruling at balance sheet date used are as follows:
Foreign currencies 1 US Dollar 1 Singapore Dollar
Impairment of Assets At each balance sheet date, the Group and the Company review the carrying amounts of their assets, to determine whether there is any indication of impairment. If any such indication exists, impairment is measured by comparing the carrying values of the assets with their recoverable amounts. Recoverable amount is the higher of net selling price and value in use, which is measured by reference to discounted future cash flows.
An impairment loss is charged to the income statement immediately, unless the asset is carried at
revalued amount. Any impairment loss of a revalued asset is treated as a revaluation decrease to the extent of any available previously recognised revaluation surplus for the same asset. Reversal of impairment losses recognised in prior years is recorded when there is an indication that the impairment losses recognised for the asset no longer exist or have decreased.
(m) Financial Instruments Financial instruments are recognised in the balance sheet when the Group has become a party to the contractual provisions of the instrument.
Financial instruments are classified as liabilities or equity in accordance with the substance of the contractual arrangement. Interest, dividends, gains and losses relating to a financial instrument classified as a liability, are reported as expense or income. Distributions to holders of financial instruments classified as equity are charged directly to equity. Financial instruments are offset when the Group has a legally enforceable right to offset and intends to settle either on a net basis or to realise the asset and settle the liability simultaneously.
Other Non-Current Investments Non-current investments other than investments in subsidiaries and associated companies are stated at cost less provision for any permanent diminution in value. Such provision is made when there is a decline other than temporary in the value of investments and is recognised as expense in the period in which the decline occurred.
O n d i s p o s a l o f a n i n v e s t m e n t , t h e d i f f e r e n c e b e t w e e n n e t d i s p o s a l p r o c e e d s a n d i t s c a r r y i n g amount is charged or credited to the income statement.
Income arising from investments is taken to the income statements as and when received.